Successful group handing £4.5m to members

Scunthorpe-based Nisa-Today's achieved turnover of 1.42bn for the year ended March 28 2010, an increase of 11.9 per cent on the previous year.

Neil Turton, the chief executive, said the independent stores sector had been very "recession resilient" with more consumers shopping locally because it was cheaper than driving to out-of-town stores.

Mr Turton also revealed that Nisa-Today's was planning its first TV advertising campaign, which is due to be broadcast at the end of the year.

He said Nisa-Today's expected to grow sales by eight per cent this year.

Members were attracted by Nisa-Today's stability and transparency, Mr Turton said.

He added: "Everything is done for the members rather than third-party shareholders. We are increasingly attracting recruitment from other groups for this reason."

Following the record performance in sales and volume, the board of Nisa-Today's has decided to make a payment of 4.5m of trading surplus to members, which is the highest in the company's 32-year history.

Altogether, Nisa-Today's has 765 retail members, operating from 5,000 stores, and 228 wholesale members, who operate from 270 depots.

Neil Turton said: "We've had a fantastic year through the support of our members. The surplus payment is intended to share that success and provide help in the tough trading environment."

Last year, Mr Turton revealed he was planning to raise Nisa-Today's profile by placing the group's branding on around 1,200 shops. Around 700 stores now carry the Nisa-Today's name.

Although Nisa-Today's had evolved as a distribution-driven business, Mr Turton wants to "sharpen up" the front-end of the retail business, so more independent shops align with the group.

Nisa-Today's also plans to open another depot in the UK, although Mr Turton said he could not reveal its location at this stage.

Mr Turton warned of a "tough" year ahead for the UK economy, with job losses, pay freezes and pay cuts.

With regards to the television advertising campaign, a Nisa-Today's spokesman said: "It's still in the very early planning stages at the moment, so the exact timing is yet to be confirmed and the creative (content) is being discussed."

The Nisa-Today's central distribution services division dispatched more than 100 million cases for the first time, ending the year at 103.3 million cases, an increase of 7.7 per cent.

One of the reasons for Nisa-Today's growth was the success of the group's New Era Trading Terms (NETT) package, the company said.

Launched in 2006, NETT is a voluntary scheme designed to meet the varying trading requirements of Nisa members and provide them with the potential for greater rewards.

Nisa-Today's also achieved strong retail recruitment figures.

It added almost 460 stores, with 169 new members, in the last financial year.

PAYOUT DEPENDS ON TIME GROUP

Around 800 members will receive a share of the 4.5m trading surplus, although they will not all receive the same amount.

The surplus payment will be made available to members who have participated in the central distribution services volume scheme.

To receive the full entitlement, they must have been a member during the past three financial years.

A Nisa-Today's spokesman said: "The three-year period is to recognise the members' loyalty and support for Nisa-Today's.

"Members who have been a part of the group for shorter than that period, and therefore haven't supported it for as long, receive a pro rata payment of what they would have earned had they been a member for the three years or more.

"In simplified terms, for one year they would receive a third of the amount, and for two years, they would receive two thirds."